Even gambling mecca Las Vegas is suffering from higher unemployment and a deeper housing collapse than most cities in this recession. Vegas also has a higher rate of all of the social ills that come with gambling: crime, divorce, bankruptcy, and widespread addictions.
Gambling is a losing economic bet - no matter how much its proponents try to dress it up.
Many of gambling's associated problems have been wallpapered over for years in Atlantic City because the resort town basically enjoyed a monopoly. But new competition - mainly from Pennsylvania, as well as New York, Connecticut, and other states - is eating Atlantic City's lunch. The recession has also chased away gamblers and tourists.
As Atlantic City's fortunes faltered, many of its problems became more glaring. Crime, poverty, desolate streets, and a corrupt and an incompetent local government surround the glitzy casinos.
But competition for gamblers is what's really killing Atlantic City. And that competition will only grow. So, just how is a state takeover going to reverse the Shore town's fortunes?
Christie's stated goal is to make Atlantic City the Las Vegas of the East. But that snappy catchphrase reflects what Atlantic City has always tried to do. Nothing new there, and Christie's actual plan so far is very fuzzy.
Just making the streets bordering casinos safer and cleaner isn't a game-changer. The casinos in Pennsylvania will still be easier to get to for many of Atlantic City's former customers.
Christie should aim higher than just trying to replicate Vegas' bright lights, sex, and sleaze. Given the increased local competition, Atlantic City should instead capitalize on its main competitive advantage: It's on the ocean.
